Payment history is one of the most important factors in credit scores. People often ask, “How can I improve my credit?” The answer is honestly quite simple, keep a low utilization rate and make on time payments. 

An auto loan is a great option when you are looking to improve your payments with an installment loan, as well as provide you with wheels. Let’s face it, everyone can benefit from owning a vehicle; why not have it help improve that score? Using a buy here pay here or having a higher interest rate currently may help you down the road when you look to purchase another vehicle or home. Paying more now to establish your credit is not always a bad thing. 

Each dealership will probably have different finance companies to help you with your purchase. Each finance company will look at your credit, but let’s face it; good, bad, or ugly you have OPTIONS! Maybe a lower monthly payment for a longer term is going to work better than going with the higher payment for a shorter term. Each option will improve your credit if you pay on time.

Some dealerships advertise helping those with no credit, less than stellar credit and those of us with downright bad credit. So, you need a new car, but you have no idea where to go because your credit score is closer to 300? There are some that do not care about your credit; in fact, they want to help you increase it! How do they do that? By making a payment plan that works for you! Paid weekly? Bi-weekly? Monthly? Some finance companies or buy-here-pay here dealerships will offer multiple payment options as well as having no prepayment penalties so you can make those extra payments to help decrease your utilization. On top of that, some report to the credit bureau to help you increase that credit score. 

It is quite simple, if you need help along your journey of increasing your score, shop around for the best option for you!